Bi-Lo filed for Chapter 11 bankruptcy today in South Carolina federal court.
Its chief executive said the 215-store grocery chain has a $100 million financing commitment from GE Capital to use to operate while the court proceedings play out.
Throughout this process, our doors will remain open and our commitment to our customers will not change," said Michael Byars, president and CEO of Bi-Lo.
The company is three days away from a loan coming due and has been unable to refinance, it said in a statement.
"In a normal credit environment we would have expected to refinance the maturing term loan on reasonable terms in the ordinary course of business," Mr. Byars said. "Unfortunately, the current credit environment is very challenging."
Bi-Lo expects its customer policies and programs, including its Bonuscard and associated promotions, returns/exchanges and other special promotions, to continue without interruption.
It has nine stores in the area.
An employee at the Pine Log Road Bi-Lo in Aiken, who wouldnt give his name, said operations would remain unchanged.
South Carolina Bureau Chief Preston Sparks contributed to this story.